Car VAT 1%, Motorcycle IDR 7 Million

Jakarta –

ESDM Minister Arifin Tasrif said subsidies for electric vehicles would start next month. This subsidy is given for the conversion of fuel-powered motorbikes to electricity, the purchase of electric motorbikes and the purchase of electric cars.

Arifin confirmed that the subsidy given for electric motorbikes is Rp. 7 million.

“Yes, motorcycles are roughly the magnitude,” he said after a meeting to discuss subsidies for electric vehicles at the Coordinating Ministry for Maritime Affairs and Investment, Jakarta, Monday (20/2/2023).

He said subsidies for cars were not in the form of money. He also confirmed that the form is in the form of a 1% tax as previously stated by the Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan.

“Yes, I heard that,” said Arifin.

Luhut previously said that the government would cut the value added tax (VAT) for electric cars from 11% to just 1%. Meanwhile, subsidized electric motorbikes are Rp. 7 million.

“Earlier, Rp. 7 million was for motorbikes. Later on, for cars, the incentive is from 11%, we will make 1%. The tax is (1%). That’s a subsidy, it’s the same as a subsidy,” Luhut told journalists after being a speaker at the Mandiri Investment Forum at the Fairmont Hotel. , South Jakarta, Wednesday (1/2).

(acd/dna)